Netflix, Disney, and Roku tumble after Apple announces its streaming service will be cheaper than rivals
- Shares of Disney, Netflix, and Roku fell on Tuesday after Apple announced its upcoming streaming service will cost $4.99, a lower figure than previously expected - and one that undercuts rival prices.
- Apple also said customers who buy a Mac, iPhone, or Apple TV will recieve a free year of the service.
- The announcement comes as the streaming space is set to get much more crowded in the coming months with the release of new platforms from Disney, AT&T, and Comcast.
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Apple's new streaming service is shaping up to cost less than its competitors.
Rivals cost at least a few dollars more: Disney Plus costs $7 a month, and Amazon Prime Video costs at least $9 a month. Hulu costs $6 a month for its basic plan, while Netflix and HBO each offer their services for more than $10.
Disney is also going to offer a bundled service that includes Disney Plus, ESPN Plus, and ad-supported Hulu for $13.
Here's how much each company was trading down following the announcement on Tuesday, as of 3:22 p.m. ET:
Apple also said customers who buy a Mac, iPhone, or Apple TV will recieve a free year of Apple TV Plus. The company's streaming service has been widely viewed as one of its efforts to diversify its services business.
Roku sells smart TVs and streaming players that allow people to access a variety of streaming platforms including Netflix and Hulu. It also offers its own ad-supported TV and movie service called The Roku Channel.
Apple's announcement comes as the streaming space is bracing for the launch of several new platforms. AT&T is expected to roll out a streaming service called HBO Max, while Comcast is planning to introduce its own ad-supported platform.